City aims to stabilise prices

The programme for school supplies has attracted 15 firms, while 14 and five have registered respectively for the medicine and dairy programmes. — Photo petrotimes.vn

HCM CITY (VNS) — The HCM City People’s Committee has approved a price stabilisation campaign that will go on until March 2017.

The prices of essential foods and foodstuff, school equipment, dairy products, and medicines will remain steady for a year starting on April 1, with 86 companies registering to take part, one more than last year, according to the Department of Industry and Trade.

Forty of them make food and foodstuff, with six joining what has become an annual programme for the first time. Four companies that took part last time have withdrawn.

The programme for school supplies has attracted 15 firms, while 14 and five have registered respectively for the medicine and dairy programmes.

Ten banks have signed up, and they will lend VND12.9 trillion (US$575.47 million) to the participating companies.

This represents an increase of VND1.05 trillion ($47.08 million) over last year, the department said.

Of the sum, VND9.3 trillion ($404.3 million) will be short-term working capital loans for 12 months at an interest rate of 5-8 per cent.

The remaining VND3.6 trillion will be medium- and long-term loans for participating firms to invest in production facilities, improve technologies and develop distribution systems, and the interest rate will be 8.5-9 per cent.

The participating companies have been instructed to increase supply by 30-35 per cent this year and ensure their products meet 25-30 per cent of market demand, rising to 30-40 per cent during Tết (Lunar New Year) in early 2017.

School equipment suppliers have been told to increase supply by 15-30 per cent and meet 35-40 per cent of market demand.

The diary products to be supplied will be 377.5 tonnes a month, 8.37 per cent higher than last year.

Pharmaceutical companies have been instructed to meet 50 per cent of demand.

According to the People’s Committee, the programme has benefited both consumers and producers in the last 14 years, and more and more firms are signing up.

They have contributed greatly to developing distribution channels for Vietnamese products and the “Vietnamese people give priority to using Vietnamese goods” campaign, and to controlling inflation and ensuring social security, it said. — VNS